(1) During times of funding shortages under the Arkansas Academic Challenge Scholarship Program, the Division of Higher Education shall give a priority to awards to applicants meeting all eligibility requirements under the program who agree to accept a forgivable loan, as set forth in this section, in lieu of a scholarship and who agree to teach, as required under § 6-85-110, in a: Subject matter area designated by the Division of Elementary and Secondary Education as having a critical shortage of teachers; or
(2) Geographical area of the state designated by the Division of Elementary and Secondary Education as having a critical shortage of teachers.
(3) The Division of Higher Education shall make awards under this subchapter as follows: First, to applicants who agree to the provisions of this section; and
(4) Then to applicants eligible under § 6-85-106(b).
(5) Forgivable loans awarded under this section shall be paid from appropriations to the program.